United States v. John Ways, Jr.
2016 U.S. App. LEXIS 14763
| 8th Cir. | 2016Background
- Defendant John Ways operated four "Exotica" head shops (Iowa/Nebraska) selling apparel, novelties, and in back "pipe rooms" drug paraphernalia and various synthetic substances labeled as "herbal incense" or innocuous names.
- ATF investigation (undercover buys Apr–Sep 2012 and controlled buys by a cooperating informant May–Aug 2012) and a parallel financial probe led to search warrants executed Sept. 13 and Dec. 21, 2012 at the shops and Ways’ residence; agents seized paraphernalia, substances, records, money, computers, and 40 boxes of 5.56 mm ammunition from a residence used by his daughter.
- Ways was indicted on: Count 1 — conspiracy to sell drug paraphernalia; Count 2 — conspiracy to distribute Schedule I controlled substances; Count 3 — conspiracy to commit money laundering; Count 4 — felon in possession of ammunition; and a forfeiture allegation. He moved to suppress evidence; the district court denied the motion.
- After a 13-day trial the jury convicted Ways on all counts and returned a forfeiture verdict; district court entered sentence and a preliminary order of forfeiture. Ways appealed challenging suppression, sufficiency of evidence for all counts, and forfeiture nexus.
- The Eighth Circuit affirmed convictions on Counts 1–3 and the forfeiture, but reversed Ways’ conviction on Count 4 (felon in possession of ammunition) for insufficient evidence of knowing possession of the ammunition found in another person’s residence.
Issues
| Issue | Plaintiff's Argument (Ways) | Defendant's Argument (Government) | Held |
|---|---|---|---|
| Validity of search warrants / probable cause | Informant unreliable; warrants not supported | Affidavits had corroboration: reliable informant history, ATF undercover buys, and financial investigation linking accounts to paraphernalia sellers | Warrants supported by probable cause; suppression denied |
| Effective date / retroactivity of SDAPA for controlled-substance count | SDAPA effective Oct. 1, 2012 so pre-July buys couldn’t create probable cause for Schedule I distribution | SDAPA enacted July 9, 2012; many substances were illegal earlier as analogues; paraphernalia sales illegal throughout | SDAPA effective July 9, 2012; investigation and indictment valid |
| Sufficiency of evidence as to knowledge of controlled substances (Count 2) | Ways lacked knowledge; sought compliance, consulted counsel and probation officer | Evidence of sales, employee instructions (forbidding drug-words), lab reports, and statements advising use showed knowledge | Jury reasonably could find Ways knew substances were controlled; conviction affirmed |
| Possession of ammunition (Count 4) | Government lacked proof Ways knowingly possessed ammunition found in daughter’s residence | Government relied on Ways’ connection to house, clothing, business records, employee testimony about firearm | Reversed: evidence insufficient to prove knowing constructive possession beyond reasonable doubt |
Key Cases Cited
- Illinois v. Gates, 462 U.S. 213 (principles governing probable-cause determination for warrants)
- Johnson v. United States, 529 U.S. 694 (statute without effective-date provision takes effect on enactment)
- McFadden v. United States, 135 S. Ct. 2298 (knowledge element for §841(a) — knowing possession/identity of controlled substance)
- United States v. Posters N Things Ltd, 969 F.2d 652 (commingling and money-laundering jury-deference principles)
- United States v. Jackson, 610 F.3d 1038 (constructive-possession requires knowledge and dominion over premises)